REG - Distribution Finance - Q1 Trading Update

Distribution Finance Capital HoldingsAnnouncement

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RNS Number : 5088Z  Distribution Finance Cap. Hldgs PLC  08 April 2026

8 April 2026

 

Distribution Finance Capital Holdings plc

("DF Capital" or the "Company" together with its subsidiaries the "Group")

Q1 Trading Update

Momentum in lending continues with strong portfolio quality

Distribution Finance Capital Holdings plc (AIM: DFCH), a specialist bank
providing financial solutions that support manufacturers, dealers and
distributors across the UK, provides a trading update for the first quarter
ended 31 March 2026.

·    The momentum in lending seen through the prior year has continued
into the first quarter with new loan origination reaching a record £469m, up
c.23% on prior year (Q1 2025: £382m).

·    The Group's loan book closed the period at c.£895m, up c.26% on the
prior year (Q1 2025: £713m), and included £21m relating to the Group's
recently launched asset finance product, up c.40% from year-end (31 December
2025: £15m).

·    The Group's retail deposits exceeded £1bn for the first time since
being authorised as a bank in September 2020.

·   Stock days in the core inventory finance lending product, being the
average age of loans outstanding, remains well within sector tolerances as the
Group closes the traditional dealer re-stocking period, extending slightly to
141 days at the period end (31 December 2025: 129 days).

·   Portfolio quality remains strong and well within credit appetite. Total
arrears and loan balances in legal recovery represented 0.6% (31 December
2025: 0.9%) of the Group's entire loan book:

o  Early arrears (less than 30 days) totalled 4 cases, with aggregate arrears
balances of less than £0.1m (31 December 2025: 2 cases and arrears of £0.2m)

o  Mid to late arrears (30 to 60 days) totalled 2 cases, with aggregate
arrears balances of less than £0.1m (31 December 2025: 4 cases and arrears of
£0.4m)

o  Default cases (>90 days past due), where balances are in legal recovery
(i.e. non-performing loans(1)), totalled 30 (31 December 2025: 33), with
aggregate loan balances of £5.0m (31 December 2025: £6.8m), representing
0.6% of the Group's total loan book (31 December 2025: 0.9%)

·    Whilst the macro-economic and geo-political landscape remains
uncertain, the Group has not observed any immediate systemic or supply chain
impact across its manufacturer, dealer and distributor customers. The Group
remains vigilant and considered in its approach to managing credit risk and
its lending portfolio.

 

Carl D'Ammassa, Chief Executive Officer, commented: "It is pleasing to report
strong ongoing momentum in lending since the start of the year, demonstrating
continued progress against our 2028 and 2030 targets. Whilst the
macro-economic and geo-political environment remains uncertain, we are well
positioned to navigate this, providing appropriate support - where needed - to
our diversified customer base, whilst also drawing on our deep expertise and
strong credit stewardship as demonstrated through the economic cycle and most
relevantly since authorisation as a bank in 2020."

(1) A loan that is in default (>90 days past due) going through formal
recovery of our assets and/or unlikely to pay in full, where interest and fees
are no longer accruing. Non-performing loans have appropriate credit loss
provisions in place.

 

For further information contact:

 Distribution Finance Capital Holdings plc
 Carl D'Ammassa - Chief Executive Officer                                  +44 (0) 161 413 3391
 Sameera Khaliq - Chief Financial Officer
 Kam Bansil - Head of Investor Relations                                   +44 (0) 7779 229508
 http://www.dfcapital-investors.com (http://www.dfcapital-investors.com/)

 Panmure Liberum Limited (Nomad and Broker)                                +44 (0) 203 100 2000
 Chris Clarke

 William King

 Gaya Bhatt

 Alma Strategic Communications                                             +44 (0) 203 405 0235
 Josh Royston
 Hilary Buchanan
 Hannah Campbell
 Sarah Peters

 

About DF Capital

DF Capital is a speciality lender providing flexible financing solutions that
support the sales and growth of manufacturers, dealers and distributors
operating in attractive underserved retail markets across the UK.

As a bank, DF Capital's lending is underpinned by its award-winning savings
products, straightforward digital platform, and exceptional customer service.

The Group is listed on AIM on the London Stock Exchange under the ticker DFCH.

For more information, please visit www.dfcapital.bank
(http://www.dfcapital.bank/)

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